Commentary and analysis on markets, personal finance, and wealth building from a contrarian perspective. "I believe in the discipline of mastering the best that other people have ever figured out. I don’t believe in just sitting there and trying to dream it up all yourself. Nobody’s that smart."
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Sunday, May 21, 2017

Input Capital reports 1st quarter earnings

Adjusted streaming sales of $8.967 million on the delivery of 18,992 canola equivalent metrictonnes1 (“MT” or “tonnes”) at an average price of $472 per MTGenerated an additional $2.267 million in sales from canola trading for total adjusted sales1 of$11.234 millionCash operating margin1from streaming contracts of $8.107 million, or $427 per MT (90.4% cashoperating margin)Adjusted operating cash flow1 of $2.916 million or $0.04 per share

The company is debt free and can finance existing growth with company generated cash flow. The company continues sign streaming contracts as illustrated below.

One other facet of this company that I like and that gives me confidence in the business is that the management owns 27% of the shares and during the quarter the management bought 4.2 million shares at a cost of around $1.80 per share.

This indicates to me that the managers of the company, and those that know the business best, are putting their own money into additional shares. That is usually a good sign.